Ternium Earnings Call Transcripts
Fiscal Year 2026
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Adjusted EBITDA rose 21% sequentially in Q1 2026, with net income at $372 million. Mexican demand is recovering, Brazil faces high imports, and Argentina's recovery is uneven. CapEx will decline as major projects complete, supporting higher free cash flow and stable dividends.
Fiscal Year 2025
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Resilient 2025 results were achieved through $250 million in cost savings and operational efficiency, despite market and safety challenges. Major expansion projects in Mexico advanced, supported by a $1.25 billion green loan, while CapEx is set to decline and margins are expected to recover in 2026.
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Q3 2025 saw higher EBITDA from cost reductions, but a net loss due to a large non-cash write-down at Usiminas. CapEx remains high for expansion, with a stable dividend and cautious outlook amid trade policy uncertainty and regional demand shifts.
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Adjusted EBITDA rose 25% in Q2 2025, driven by higher steel prices in Mexico and cost efficiencies, with net income at $259 million. CAPEX peaked at $800 million, and further EBITDA and margin improvements are expected as cost-saving initiatives continue.
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Sequential EBITDA and adjusted net income improved in Q1 2025, supported by cost reductions and higher shipments, despite trade and market uncertainties. Expansion project capex was revised up to $4 billion, with strong cash position and stable dividend policy maintained.
Fiscal Year 2024
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2024 saw 16 million tons shipped, $2B adjusted EBITDA, and strong net cash despite market headwinds. Expansion in Mexico and a new wind farm in Argentina advanced, while trade and pricing pressures persisted. Q1 2025 is expected to bring margin improvement and stable shipments.
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Q3 2024 saw lower margins due to falling steel prices, but shipments rose in all key markets. Major expansion projects and sustainability initiatives are progressing, with 2025 CapEx set to reach a record $2.3 billion. Dividend yield remains high at about 8%.
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Adjusted EBITDA reached $545 million in Q2 2024 with a 12% margin, while net income was impacted by a $783 million litigation provision. Expansion projects in Mexico and Argentina are progressing, and margins are expected to recover in Q4 as steel prices rise and costs decline.